SourceBio International PLC (AIM:SBI) has posted first-half results showing considerable growth in revenues from core business lines year-on-year.
In the results statement, Jay LeCoque, SourceBio executive chairman, commented: "We are encouraged with progress and growth delivered in the three core business units in the first half. Our operational focus remains the continued further scale-up of Cellular Pathology and Digital Pathology volumes through the rest of the year and beyond. We expect a very busy second half and look forward to updating the market in due course."
The company, a leading international provider of integrated state-of-the-art laboratory services, saw revenues from its three core business units of Healthcare Diagnostics, Genomics and Stability Storage - excluding Manufacturing - jump by 74% to £13.7mln in the six months ended June 30, 2022. up from £7.9mln at the same stage in 2021.
Gross profit from the company's three core business units were up 58% to £5.9mln (H1 2021: £3.7mln) with gross margin at 43.1% (2021: 47.3%)
SourceBio said Cellular Pathology and Digital Pathology revenues were up more than fourfold to £6.8mln (H1 2021: £1.7mln) including the first contribution from LDPath since its acquisition in March 2021, with organic Cellular Pathology revenues of £4.6mln, up 179% on a like-for-like basis,
The company highlighted strong delivery from LDPath, with revenues of £2.2mln, up 82% on a like-for-like basis and 14% ahead of plan.
Total revenues in the first half were £20.5mln (H1 2021: £37.3mln), including COVID-19 PCR revenues of £6.6mln (H1 2021: £28.4mln) which is no longer considered a core business line.
The company reported adjusted EBITDA of £2.1mln (H1 2021: £11.2mln), largely reflecting the reduction in COVID-19 PCR volumes, as expected
As of June 30, 2022, the company had total cash of £15.2mln (June 30, 2021: £17.2mln). The group said it remains free of borrowings and this amount is after having paid the initial net cash consideration of £15.6mln in relation to the acquisition of LDPath in March
Operational highlights in the first half:
- Successful integration of LDPath following acquisition in March, with LDPath trading 14% above plan
- Scale-up of Cellular Pathology and Digital Pathology throughput to record levels achieved in June 2022
- Ongoing planning to address the challenge to increase capacity to meet market demand for Cellular Pathology and Digital Pathology services
Post-period end highlights:
- Premises fit-out underway of a larger Cambridge site to support anticipated growth in the Genomics business unit.
- Larger premises in London identified to support greater throughputs of private Cellular Pathology and Digital Pathology work anticipated in SourceLDPath. Both facilities are expected to be up and running by Q4.